17 Apr 2025
💵Proposed Rule Change for Cash Settlement of FLEX ETF Options
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing of Proposed Rule Change To Amend Rule 5055 To Allow for Cash Settlement of Certain FLEX Equity Options
Summary
The SEC has published a notice regarding BOX Exchange’s proposal to amend Rule 5055, allowing cash settlement for specific FLEX Equity Options. This aims to accommodate evolving market needs and provide an alternative settlement method, enhancing liquidity and managing investment risks. The rule change underscores the importance of investor flexibility and market transparency.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change allows for cash settlement of certain FLEX ETF Options, which presents a new opportunity for businesses to manage investment risks more effectively, impacting trading strategies for market participants and potentially expanding the investor base including those in OTC markets.